Q FM Africa's Modern Radio
THE Insurers Association of Zambia (IAZ) has welcomed Finance Minister Felix Mutati’s 2018 budget pronouncement that government will repeal and replace the Insurance Act to strengthen governance and financial soundness in the insurance industry.
IAZ president Paul Nkhoma says the regulatory framework in the sector is outdated.
Mr Nkhoma says the association is particularly happy that the government has listened to the submissions from the insurance industry in terms of what need to be done to unlock the potential that the sector offers.
He notes that the Insurance Bill also seeks to create a favourable framework for the development of inclusive insurance by the introduction of Microinsurance in the Act.
Mr Nkhoma says this will significantly accelerate the development of microinsurance products, and improve the uptake of insurance by Zambians from all walks of life.
He adds that the bill will also promote the uptake of insurance locally and reduce the externalization of insurance premiums.
Mr Nkhoma further states that the association also welcomes the removal of the insurance premium levy on reinsurance premium as it was making the local reinsurers uncompetitive as reinsurance is a global business.